Arch Capital Group Ltd. has launched a new multiline reinsurer, Hamilton, Bermuda-based Arch said Tuesday.

The new Bermuda reinsurer — Watford Re Ltd. — was established with $1.133 billion in capital.

Watford Re, a Class 4 insurer licensed by the Bermuda Monetary Authority, intends to combine a diversified reinsurance business with a disciplined investment strategy composed primarily of noninvestment-grade credit fixed income assets, Arch said in a statement.

John Rathgeber, previously vice chairman of Arch Worldwide Reinsurance Group, has been named CEO of Watford Re.

“Our ability to solve the needs of our clients is enhanced through adding Watford Re’s capabilities to our existing range of product offerings,” Marc Grandisson, chairman and CEO of Arch Worldwide reinsurance and mortgage groups, said in the statement. “We look forward to working closely with our broker partners and clients to create innovative products and structures not available in today’s traditional reinsurance market.”